Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q1 2023 Earnings Presentation
20 slides from Darden Restaurants's earnings presentation, Sep 22, 2022
Slide 1: Earnings Call: Fiscal 2023 First Quarter Results
Earnings Call Fiscal 2023: First Quarter Results September 22, 2022
Slide 2: Disclaimer/Non-GAAP Information
Disclaimer/Non-GAAP Information IMPORTANT NOTICE The following slides are part of a presentation by Darden Restaurants, Inc. (the "Company") and are intended to be viewed as part of that presentation (the "Presentation"). No representation is made that the Presentation is complete. Forward-looking s
Slide 3: A full-service restaurant company with competitive advantages
A full-service restaurant company with … 1 Be financially successful through great people consistently delivering outstanding Mission food, drinks and service in an inviting atmosphere making every guest loyal. 4 Significant Scale Extensive Data & Insights Rigorous Strategic Planning Results- Orient
Slide 4: Brilliant With The Basics
Brilliant With The Basics J. DARDEN
Slide 5: Value-Creating New Restaurants
Value-Creating New Restaurants 9 New Restaurants | 8 States 5
Slide 6: To Go Sales Benefit From Digital Platform
To Go Sales Benefit From Digital Platform Digital Transactions 62% of Off-Premise Sales | 10% of Total Sales 6
Slide 7: Promotional Activity Filters
Promotional Activity Filters... Elevate Brand Equity Simple to Execute Not at a Deep Discount 7
Slide 8: General Manager/Managing Partner Conferences
General Manager/Managing Partner Conferences 8
Slide 9: Helping to Fight Hunger
Helping to Fight Hunger ® 25 Trucks for 25 Feeding America Food Banks Since January 2021 9
Slide 10: Thank You To Our Team Members
Thank You To Our Team Members 10
Slide 11: Fiscal 2023 First Quarter Financial Highlights
Fiscal 2023 First Quarter Financial Highlights $2.4 Billion 6.1% TOTAL SALES TOTAL SALES GROWTH 4.2% $1.56 SAME-RESTAURANT SALES DILUTED NET EPS FROM GROWTH CONTINUING OPERATIONS 11
Slide 12: Fiscal 2023 First Quarter Financial Highlights
Fiscal 2023 First Quarter Financial Highlights $340 Million $150 Million $199 Million 1 EBITDA DIVIDENDS PAID SHARE REPURCHASES 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentation. 12
Slide 13: Margin Analysis
Margin Analysis Fiscal Q1 2023 ($ millions) % of Sales vs Prior Year Favorable/(Unfavorable) Sales $2,446.1 Food and Beverage $795.3 32.5 % (280) Restaurant Labor $793.8 32.5 % (50) Restaurant Expenses $403.5 16.5 % (10) Marketing Expenses $30.3 1.2 % (20) Restaurant-Level EBITDA $423.2 17.3 % (360)
Slide 14: First Quarter Segment Performance
First Quarter Segment Performance Segment Sales ($ millions) vs. Prior Year Fine Dining Other % 3.7% 6.6 $1,131 $567 $605 % 9.9% $527 $1,090 8.6 $480 $169 $183 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 Average Weekly Sales vs. Pre-COVID Fine Dining Other .2% 20 1.4% $157,834 %
Slide 15: First Quarter Segment Performance
First Quarter Segment Performance Fiscal 2023 vs. Prior Year Segment Sales ($ millions) Fine Dining Other % 3.7% 6.6 $1,131 $567 $605 % 9.9% $527 $1,090 8.6 $480 $169 $183 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 1 Segment Profit Margin Fine Dining Other 23.2% 19.1% 19.0% 19.8
Slide 16: Reiterating Fiscal 2023 Annual Outlook
Reiterating Fiscal 2023 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: $10.2B to $10.4B 55 to 60 ~6% Same-Restaurant Sales Capital Spending Effective Tax Rate Growth $500 to $550 million ~13.5% 4% to 6% Earnings per Diluted Share $7.40 to $8.00 (~124 million
Slide 17: Question & Answer Session
J DARDEN RESTAURANTS Question & Answer Session
Slide 18: Additional Information
J DARDEN RESTAURANTS Additional Information
Slide 19: Commodities Outlook – Second & Third Quarter
Commodities Outlook – Second & Third Quarter September - February FY2023 Spend by category Coverage Outlook Beef 23% 35% Mid single digit inflation Produce 12% 55% Mid single digit inflation Seafood 11% 70% Low single digit inflation 1 Dairy / Oil 10% 55% Low double digit inflation Low-to-Mid double
Slide 20: Q1 Fiscal 2023 EBITDA Reconciliation
Q1 Fiscal 2023 EBITDA Reconciliation $ in millions Earnings from Continuing Operations $193.6 Interest, Net 19.8 Income Tax Expense 30.8 Depreciation and Amortization 95.6 EBITDA $339.8 20